KFTD Improves Control to Mitigate Legal Risks of Corruption

To realize a business process that is free from corruption, Kimia Farma Trading & Distribution (KFTD) determines and controls processes based on a bribery risk assessment to mitigate legal risks, especially those related to corruption, collusion, and nepotism.

The company also reviews the possibility and consequences of potential legal problems and assesses what actions will be taken. This is a form of mitigating the impacts of possible unwanted events.

To uphold its integrity, KFTD employs good corporate governance principles to improve controls in the following areas:

  • At KFTD, we leave no stone unturned in ensuring the integrity of our human resources and business processes. This includes a rigorous screening process during recruitment to identify candidates with the highest integrity. Additionally, all business activities, especially those in high-risk areas for bribery and corruption, undergo a comprehensive feasibility study.
  • Ensuring all business partners have implemented the anti-bribery management system policies by having a brief assessment through reference checks about the partnersโ€™ history in handling any corruption issue. This assessment is to control any legal risks of corruption and avoid any partners with flawed reputations in managing corruption issues.
  • Financial integrity is a cornerstone of KFTD’s operations. We Enforce stringent financial controls to eliminate any potential for corrupt behavior within the company. This includes quality checks on all transactions, tiered verification for large-scale payments, and independent financial audits for comprehensive reviews of all transactions.
  • To improve control and mitigate any legal risk of corruption, KFTD also implements the Anti-Bribery Management System in the operational areas, including procurements, distributions, utilizations, human resources, and any other resources. The company employs higher management control to supervise all large-scale transactions and collaborations.

Improving controls over its business areas helps KFTD mitigate possible legal risks and prevent bribery and corruption. With these controls, the company assesses which parties or transactions are worth preserving to continue the business.

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